Real Estate Market Shift! What You Need to Know

The market is shifting in Minneapolis and St. Paul real estate market. I am seeing it a lot right here in Lakeville. How is it shifting? The biggest change is in the momentum of the market with regards to regular residential sales. It seems like overnight I have been seeing more activity in sales of buyers seeing a good deal and writing an offer. There are still a lot of homes for sale in the Twin Cities, but we are moving towards a more balanced market.

Inventory is down considerably over the same period last year and that is finally starting to catch up with the market. The good homes are selling and the crap is starting to sit. There is a noticeable difference between the two and buyers need to be aware of this. As the inventory shrinks so will the deals and quality of the good homes. The change to more listing inventory will not happen overnight because the sellers like buyers are usually 8 months behind in what is happening in the market currently. The biggest reason for this is due to the media being behind and the fact that when the news is reporting on the real estate market they lump the entire country into it. Every market is very different and you have to look not only from a local perspective but even more so a hyper local perspective. There is a huge difference right now between the average days on market for Eagan vs. Anoka, they are on opposite sides of the city and are experiencing different markets.

If you are a buyer my advice to you is when you find the right home, make an offer. Don't fool yourself into believing you have weeks to decide if you want to buy this home or not. If you do you may very well find yourself on the outside looking in. It shouldn't matter how long a home has been on the market, that doesn't mean it's not a desirable home, especially in this market. Two days or two hundred days, write on that home! All that maters is price, condition and location. Can you see yourself living there? Is it the home you have dreamed about? If yes is the answer then what are you waiting for?

If you are a seller time is critical. Interest rates are low, buyers are buying and the inventory is down. If the home is priced right it will sell sooner rather than later. Savvy buyers know a good deal and the resent sales in Lakeville, MN show that several homes over the last few months that were priced right sold in less than 30 days. Several sold for 97% or better of the list price. Over priced homes sat with numerous price reductions. This is not always the fault of the seller or the agent, it is part of the ever shifting market. Sometimes if the price range has a large swing within it, you have a much harder time nailing the price down. This could be due to the fact that there are a very limited comps for similar old homes. If you end up in this situation you have to react by watching your traffic and numbers and not be afraid to adjust the price and position your home differently in the market place.

Lakeville is still ahead of many other cities in the metro area with regards to real estate sales, cost per square foot and many other factors all together makes Lakeville the strong market it is.  If you are thinking of buying or selling, knowing the local Lakeville market will give you the edge over many of your competitors.

Tom Sommers/Edina Realty